Top 24 Free Payroll Software in 2024
Streamline your payroll processes and ensure accuracy with free payroll software solutions.
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Payroll processing is an inseparable part of running any business since it involves the correct and timely management and distribution of employees’ paychecks. It also covers tracking vacation days and sick leave and managing benefits, taxes, and retirement contributions. But this mistake-prone administrative task can be formidable for even the most skilled HR professionals and accountants.
Since a paycheck is the primary source of income for most of the workforce, even a slight mishap could cost them and the organization considerably. Errors or delays in payment can cause frustration and financial stress, affecting job performance and overall job satisfaction.
To minimize mistakes and ensure that all regulations and taxations are in order, companies can outsource payroll processing. In fact, 73% of organizations outsource some aspect of payroll, according to Deloitte. However, since it is a sensitive matter, the third-party provider must be reliable and meet employers’ unique requirements and budget.
One of the biggest players in the payroll processing industry is ADP, which has dominated the market for over seven decades. The company has a comprehensive set of tools for those looking to optimize their payroll operations.
But is this provider compatible with any business?
To help employers search for payroll software, in this Shortlister article, we will do an in-depth analysis of ADP’s payroll processing services and compare them against the biggest ADP competitors.
ADP Overview & ADP Alternatives
ADP, short for Automatic Data Processing, has been a major player in the payroll industry for decades. Founded in 1949, when paper ledgers were still widely used, the company was among the first to embrace emerging technology, from mainframe computers to cloud computing, leading to its major success today.
Another reason behind the company’s affluence is its industry-leading human capital management (HCM) solutions. ADP covers everything from basic payroll to HR management, tax and compliance, outsourcing, and HRIS. In other words, the entire employee lifecycle, from hiring to retirement.
Main Features
The provider offers two types of payroll services, for small companies with up to 50 employees and a full payroll service for medium to large companies.
Small Business Payroll (1-49 employees) | Medium to Large Business Payroll (50-1000+ employees) |
· Automated
online payroll, including tax filing and payment · Federal,
state, and local compliance, with easy access to mandatory forms like W-2 and
W-9 · Simple
integration with time-tracking and HR features (depending on the plan) · Self-service
app for employees · Expert
support | · Fully
automated payroll · Automated
employee data syncing · Integration
with HR, benefits, talent, etc. · Scalable
levels of service and outsourcing · Flexible
payment · Native
mobile app for employees and managers · Expert
support |
Price Plans
ADP has multiple plans that fit into two categories, depending on the number of employees. This provider uses the pricing model per employee per month (PEPM) with a monthly base fee.
Although the company’s not too upfront about its pricing, according to some sources, the cheapest plan (Essential) starts at $79 per month plus $4 per employee. Additionally, with small business payroll, employers get three months for free, and there’s also a possibility for a one-person payroll.
Small Business Payroll (1-49 employees)
| Medium to Large Business Payroll (50-1000+ employees) |
| Midsized to enterprise payroll is available through ADP Workforce Now, a comprehensive HCM solution for large employees with three price plans, Essential, Enhanced & Premium. Payroll features are included in all three plans:
|
Three months free
| No free plan/free trial |
Overall, its comprehensive set of tools makes this vendor a good fit for employers looking for complete automation on payroll, HR, and other HCM solutions. However, ADP’s implementation and use can be challenging for smaller teams looking for simpler solutions.
Considering that, we’ll look into ADP competitors like Paychex, Gusto, or Paycor for feature and price comparisons.
ADP Biggest Competitors
ADP is a dominant player in the industry, but it’s not a one-size-fits-all payroll solution.
Many providers on the market have proven to be strong competitors of ADP in one or more ways. For example, some offer more affordable plans, while others may have more niche solutions or simpler features.
To ease up the potentially time-consuming process of choosing a vendor, we’ve compiled a list of ADP’s biggest competitors.
1) Paychex
With over 50 years of experience, Paychex is another “old timer” and leading provider of payroll outsourcing solutions. The company offers various services to help businesses manage payroll processing, tax filing, employee benefits, and HR administration. As a direct competitor of ADP, Paychex has a robust set of tools best suited for small to medium-sized businesses.
Main Features
One of the advantages of Paychex is that it allows companies to compensate any kind of worker, whether full-time, hourly, or contract employee, with multiple payment options. Apart from being an excellent option for small and medium organizations, it’s also a remote-friendly provider.
Small Business Payroll (1-19 employees) | Medium to Large Business Payroll (20+ employees) |
|
|
Price Plans
Paychex’s pricing plans are tailored to the specific needs of each client and their company size, much like ADP. However, it’s a more affordable option, with prices starting at $39 per month plus $5 per employee (Paychex Flex Essentials), and there are three subscription types: Essentials, Select, and Pro.
Paychex Flex Essentials
| Paychex Flex Select | Paychex Flex Pro |
| All Paychex Flex Essentials, plus:
| All Paychex Flex Select features, plus:
|
Apart from the subscriptions, Paychex offers other features as add-ons or standalone products, like Ben Admin, retirement services, or group health insurance.
2) Deel
Founded in 2018, Deel is one of the newest providers on this list. To deal with the ever-evolving workplace, the company was created for employers to simplify hiring and paying remote workers.
Another advantage of this provider is its focus on compliance, which is especially important when dealing with remote workers in different countries. The payroll software ensures that all contracts and payments comply with local laws and regulations, saving businesses time and money on legal fees and fines.
Main Features
While ADP is a well-established and comprehensive payroll provider, Deel tends to a specific group of businesses that prioritize remote work. In fact, employers looking to streamline their international workforce management will find Deel to be an excellent solution for payroll processing.
Since its unique selling point is global operations, the main features reflect that. Deel offers a fully managed, global payroll with an in-house team that covers onboarding, time off, local benefits, deductions, tax filing, offboarding, and more.
Fully managed payroll |
Global coverage with owned infrastructure |
International compliance |
Automated invoicing |
Localized contract and document template |
Payroll reports |
Onboarding |
24/7 support |
Price Plans
Like its features, Deel’s pricing is also a bit specific and doesn’t follow the same model as most providers. Instead, it charges for:
Contractor
Management | International
Employee Management |
Hiring and payroll
services for contractors in 150+ countries. Features include: · Localized
agreements · Compliance
document collection · Automated
invoicing · Managing
perks, benefits, time off, and expenses | Hiring on the
employer’s behalf and paying full-time employees in 90+ countries. Features
include: · Localized
agreement · Compliance
document collection · Tax
and tax deductions · Payslips · Managing
time off, expenses, and bonuses |
The pricing starts at $49 for hiring a contractor per month or $599 for hiring a full-time employee. Deel also includes a global HR platform, free for managing up to 200 employees.
3) Paycor
Founded in 1990, Paycor entered its fourth decade of successfully serving businesses of all sizes across the United States, from self-employed to corporations with over 1,000 employees. One thing to keep in mind, however, is that Paycor is more on the expensive side of payroll software. Thus, it’s best suited for those looking for a complete HRIS or HCM solution rather than basic payroll processing.
Main Features
Paycor is an intuitive, user-friendly, and feature-rich provider suitable for growing companies. It comes with payroll, HR, and business management tools in all plans, which clients can upgrade as they develop their needs.
Automated payroll |
Tax filing (W-2 and 1099 processing) &
compliance |
AutoRun functionality (used to pre-schedule payroll cycles and receive
real-time updates via Paycor’s Mobile app) |
Multiple payment options |
General ledger integration |
On-demand pay |
Employee self-service |
Reporting tools |
Price Plans
Paycor is likely the most feature-rich provider of all ADP’s payroll competitors. However, it’s also one of the more expensive ADP alternatives, starting at $99 plus $5 per person, with many additional fees. Yet, depending on the employer’s needs, Paycor’s solution finder helps companies determine the most suitable plan based on their goals, potentially saving them money on unnecessary features.
The price plans are similar to ADP, with four different subscriptions for small businesses under 50 employees. For 50+ workers, Paycor doesn’t disclose the price tag, and interested buyers should contact the sales team for a custom quote.
Basic | Essential | Core | Complete |
· Payroll
and tax services, including new hire filing or direct deposits · Wage
garnishments · Off-cycle
pay runs · Online
reporting · On-demand
pay · Worker
Opportunity Tax Credit (WOTC) · Additional
tax local authorities · Additional
tax state authorities and more | · All
Basic features, plus: · Reporting
options and a report builder · General
ledger report · Labor
distribution · Month-end
accounting Pkg. · Onboarding · PTO
tracking · Paycor
Recruit & Hire · Paycor
Analytics · HR
support center and more | · All
Essential features, plus: · One-on-one
guidance from a certified HR professional · Expense
management · Employee
import · Paycor
HR | · All
Core features, plus: · Paycor
career management tools · Compensation
planning · Talent
development · Paycor
paths upgrade |
4) Gusto
Unlike ADP, Paychex, or QuickBooks, Gusto is a relatively new player in the industry, having been founded in 2011. The company was initially known as ZenPayroll and was created to simplify the payroll process for small businesses. Since then, Gusto has expanded its services to include benefits administration and HR management, making it a one-stop shop for small businesses.
Main Features
Gusto claims to be 88% easier to use than other payroll companies, saving up to five hours per month on running payroll and HR.
While ADP may have a long history and an extensive client base, Gusto does offer more accessible-to-use solutions. In addition, its pricing solutions make it better suited for small employers not looking for complex payroll system like ADP.
Some of the main features include:
Automated payroll processing |
Unlimited payroll runs |
Automated tax filing, including federal, state, and local taxes |
State compliance support |
Employee I-9s and W-2s, and contractor 1099 forms |
Built-in benefits and time tracking |
Self-setup & built-in financial tools |
Contractor payments in 120+ countries |
Price Plans
The extent of Gusto’s features primarily differentiates based on which subscription an employer will get. Also, unlike ADP, Gusto is somewhat more transparent regarding pricing but follows the same PEPM model and a monthly fee base.
Currently, the provider offers three plans, starting at $40 plus $6 per person per month. There’s also a 30-day free payroll trial.
Simple | Plus | Premium |
| All Simple features, including:
| All Plus features, including:
|
5) Intuit QuickBooks
Intuit QuickBooks is a strong contender in the payroll industry, especially regarding small businesses. Founded in 1983, the company’s flagship product, QuickBooks, is a leading accounting software millions of small business owners use worldwide. However, besides accounting, the provider also offers payroll and HR services.
Main Features
Some of QuickBooks’s main features are its streamlined and user-friendly platform, the affordable plans starting at $22, and its self-service payroll feature.
Another feature distinguishing it as an ADP competitor is its integration with the larger QuickBooks ecosystem, making it easier for employers to manage all their financial and operational data in one place.
The general features an employer receives, no matter the subscription, are:
Unlimited payroll runs |
Automated tax and forms calculation, filing, and payment |
Federal and state tax updates |
Workforce portal |
Availability in 50 states |
Garnishment and deduction calculation and setup |
Payroll reports |
Price Plans
An excellent feature of QuickBooks is its cost transparency. The provider is upfront about the prices, which start at $37.50 per month plus $5 per employee for the bundled payroll and bookkeeping offers, and $22.50 for the payroll-only subscription.
The latter comes with three subscription models: Core, Premium, and Elite.
Core | Premium | Elite |
| Most Core features, plus:
| All Premium features, plus:
|
6) AllianceHCM
AllianceHCM is a customer-centric business. The company was founded on the belief that HR technology solutions are built from the ground up, with the customer’s voice at the core.
“We listen, learn, get to know our customers, and develop solutions that help them streamline employee management tasks,” said President of AllianceHCM, Matt Umholtz, for CIOReview, when the company was voted “Most Promising HR solutions provider” for 2022.
Main Features
The customer-centric approach of AllianceHCM translates into easy-to-use features, a self-service portal, and customizable solutions. Another key advantage is its emphasis on seamless platform integration, as the provider offers a multitude of integrations and an API.
AllianceHCM features a single employee database, where clients can manage the entire employee lifecycle. The solution is highly customizable, with integrations tailored for a different experience for every business.
Payroll processing integration |
Flexible payment options |
On-demand payment |
Tax management |
Expense management |
Garnishment services |
Work opportunity tax credit |
Employee retention credit |
Price Plans
Like ADP, AllianceHCM is not exactly transparent about the pricing on their website. However, this provider doesn’t offer distinctive subscriptions as well. Since it’s a highly customizable solution, the price depends on what an employer need. Therefore, those who are interested can reach out to the vendor to receive a custom quote.
7) Eddy
One of the most affordable providers on this list is Eddy, an all-in-one HR suite founded in 2017. While most companies like ADP tend to a larger audience, Eddy was created to help local businesses with their payroll, employee data, time tracking, hiring, and onboarding.
Another thing that distinguishes it from other ADP payroll competitors is its pricing model, which starts at $8 per employee.
Main Features
The affordability of Eddy comes at the cost of other functionalities. For example, unlike other competitors of ADP, the provider is only web-supported and doesn’t cover payroll for a remote workforce. On the other hand, it does have some great features, including:
Automated payroll and tax filing |
Child support garnishments |
New hire reporting |
Automated tax filing, including federal,
state, and local taxes |
W-2, 1099 NEC, 940, 941, and other forms |
End-of-year W-2 and 1099-NEC preparation and
filing |
Unlimited bonus and off-cycle payroll |
Next-day direct deposits |
Multi-pay-period support |
General ledger updates |
Advanced federal features like an R&D
tax credit, journal report, and time-tracking integration |
Price Plans
Overall, Eddy is an excellent payroll processing provider for local and small businesses. However, the vendor doesn’t disclose pricing information other than the $8 per employee starting price, nor has specific pricing plans. Instead, interested employers can get a free price quote.
8) APS
APS is another ADP competitor that offers payroll processing services for small and mid-sized employers in several industries. The company was founded in 1996 as Automatic Payroll Systems and has since provided U.S. employers with a good range of employee management solutions.
However, its services are not available for businesses that employ workers internationally.
Main Features
In 2000, APS developed its cloud-based technology, which was one of many upgrades that followed. In 2004, this vendor created its first version of the core HR solution, a self-service site for employees and managers in 2013, and launched a mobile app in 2018.
Although most of its features are available in the price plans, some, like benefits administration and recruiting software, are available as add-ons.
Configurable payroll processing |
Automatic error checking |
Federal, state, and local tax compliance,
filing, and payments |
Wage garnishment services |
940 Federal Unemployment and 941 Quarterly
filings |
Year-end processing, including W-2s and
1099s |
Earned Wage Access (EWA) services |
Financial wellness tools |
Price Plans
APS does not publish its pricing on the website, as it varies depending on each client’s needs. However, they offer a variety of packages that can be customized to fit the requirements of each business.
Pricing is typically based on factors such as the number of employees, the complexity of payroll and HR needs, and the level of support required. Interested buyers can request a quote for APS directly.
9) Criterion
Criterion is an HCM software provider for midmarket employers in the construction, nonprofit, government, education, franchise, and financial industries. With over 20 years in the payroll business, the provider boasts a global partner network in more than ten countries and a comprehensive set of payroll features.
Main Features
Combining simplicity with functionality makes this vendor a strong competitor of ADP.
Its highly configurable HCM platform offers talent engagement, HR, and payroll functionalities that allow small to medium-sized businesses to manage the entire employee lifecycle. From self-service payroll to prebuilt performance review templates, these are some of Criterion’s main features:
Automated payroll calculations |
Automated tax compliance and calculations
from geocodes |
Calculation of job rates, shift rates, and
salaries |
Auto rate updates for the US, UK, and Canada |
Employee self-service |
Time tracking solutions |
Cross-country operations management |
Unlimited labor distribution levels |
General ledger and export |
Price Plans
Like other ADP competitors on this list, Criterion doesn’t disclose its pricing on the public website. According to PCMag, the provider charges anywhere from $3 PEPM for payroll, $2 for applicant tracking, $1 for performance reviews, etc. Overall, all module costs could accumulate to $10 per employee per month.
However, the best way to get up-to-date information about the actual cost is by scheduling a demo with Criterion’s sales team.
10) Ceridian
Finally, there’s Ceridian, another global HCM software company. This vendor has high-profile clients and operates internationally, providing HR, payroll, benefits, workforce management, and talent management capabilities in one solution – Ceridian Dayforce.
According to an analysis of the company’s payroll customers, most employers using Ceridian (51.9%) have between 1,000 and 10,000 employees. Although it has a US-dominated client base, Dayforce is used by employers in the U.K., Canada, Australia, Japan, and South Africa.
Main Features
Dayforce HCM software is an all-in-one cloud app that covers multiple solutions, including payroll and HR. But if we look at payroll separately, these are some of Ceridian’s main features:
Automated payroll processing |
Multi-state tax management, including
filings, garnishments, deductions |
Preparation and processing of W-2 forms |
Payroll reporting |
Employee self-service app |
Flexible payment schedules |
Direct deposits |
Dayforce wallet |
Price Plans
Ceridian does not disclose pricing on their public website, so we can’t analyze its cost efficiency against ADP or other payroll solutions. Therefore, employers searching for an in-depth feature and price breakdown can contact Ceridian’s sales team and get a quote or access pricing information through the Shortlister Platform.On a Final Note
The market’s saturated with payroll providers, but only a few can match ADP’s robust payroll functionalities and comprehensive HCM features. While it’s an outstanding payroll provider, ADP can be too complex or costly for some employers.
Thus, before deciding on a solution that could affect the company and employee well-being, employers should look at other vendors to find one that best fits their size, budget, and goals.
For example, those who want a highly customizable solution or a customer-centric approach can consider AllianceHCM.
Employers looking for simplicity, especially small businesses and startups, can look into vendors like Gusto, QuickBooks, or Paychex.
APS or Criterion are reliable ADP alternatives for mid-sized companies, and fast-growing employers could benefit from Paycor’s customizable price plans.
Moreover, Eddy’s all-in-one HR suite is excellent for locally run businesses, while Deel and Ceridian cover payroll and tax compliance for a remote or multinational workforce.
Overall, all ADP competitors on this list have unique selling points that might work for some but won’t for others. That’s why the selection process needs careful evaluation of all vendor aspects, including pricing, features, and customer reviews.
For assistance in the vendor selection process and access to more vendor data, contact us or sign up for the Shortlister Platform.
Disclosure: Some of the products featured in this blog post may come from our partners who compensate us. This might influence the selection of products we feature and their placement and presentation on the page. However, it does not impact our evaluations; our opinions are our own. The information provided in this post is for general informational purposes only and should not be considered as legal, tax, accounting, or investment advice. For advice on specific issues, please consult with a qualified professional.
Written by Tamara Jovanovska
Content Writer at Shortlister
Payroll Software
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